Australian Government, 2013-14 Budget
Budget

Part 2: Expense Measures (Continued)

Foreign Affairs and Trade

Australia in the Asian Century — Asian Century Awards

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
AusAID
Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education
Total — Expense

The Government will offer up to 12,000 Asian Century Awards over five years from 2012‑13. The Awards will be for Australians to study in the region and students from regional countries to undertake study or professional development in Australia. This measure will also establish an Australia Awards Office within AusAID to strengthen and maintain links with alumni.

The cost of this measure will be met from within the existing resourcing of AusAID and the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education. The scholarships awarded to students from developing countries will contribute to the achievement of development objectives across a range of sectors and will be counted as official development assistance.

This measure forms part of the Government's strategy to take advantage of opportunities offered by the Asian Century.

Further information can be found in the Australia in the Asian Century White Paper of 28 October 2012 issued by the Prime Minister.

This measure was included as a 'decision taken but not yet announced' in the Mid‑Year Economic and Fiscal Outlook 2012‑13.

Australia in the Asian Century — Business Engagement Program

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Trade Commission

The Government will provide $7.8 million over five years from 2012‑13 to establish an Asian Century Business Engagement Grants program. This program will include projects to broaden the reach of Australian business into emerging business centres or deepen bilateral engagement in particular sectors of commercial promise.

This measure forms part of the Government's strategy to take advantage of the opportunities offered by the Asian century.

Further information can be found in the Australia in the Asian Century White Paper of 28 October 2012 issued by the Prime Minister.

This measure was included as a 'decision taken but not yet announced' in the Mid‑Year Economic and Fiscal Outlook 2012‑13.

Australia in the Asian Century — dedicated regionally‑based Ambassador to the Association of South East Asian Nations

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of Foreign Affairs and Trade

The Government will provide $7.4 million over four years to establish a dedicated Ambassador to the Association of South East Asian Nations in Jakarta, Indonesia. The appointment of a resident Ambassador will enhance Australia's foreign and trade policy interests in the region.

This measure forms part of the Government's strategy to take advantage of the opportunities offered by the Asian century.

Further information can be found in the Australia in the Asian Century White Paper of 28 October 2012 issued by the Prime Minister.

This measure was included as a 'decision taken but not yet announced' in the Mid‑Year Economic and Fiscal Outlook 2012‑13.

Combating People Smuggling — continuation of preventative initiatives

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of Foreign Affairs and Trade 4.3

The Government will provide $4.3 million in 2013‑14 to enable the Department of Foreign Affairs and Trade to continue existing preventative people smuggling initiatives. This measure provides dedicated positions in Islamabad, Kuala Lumpur, Colombo and Jakarta to engage on preventative people smuggling initiatives, continuing Ministerial and senior official support to Bali Process meetings, and continuing the Canberra‑based Ambassador for People Smuggling, and Canberra‑based support staff.

This measure is part of the Australian Government's response to people smuggling.

Department of Foreign Affairs and Trade — efficiencies

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of Foreign Affairs and Trade ‑3.3 ‑1.7 ‑1.7 ‑1.8
Department of Foreign Affairs and Trade ‑8.7 ‑8.9 ‑17.7 ‑25.2

The Government will achieve savings of $88.4 million over six years (including $11.7 million in 2017‑18, and $7.7 million in 2018‑19) from a temporary reduction in Canberra‑based positions in 2013‑14, and more efficient management of Australia's overseas owned estate and the Department's capital budget. The Government will also close the Australian Embassy in Budapest, Hungary.

Savings from this measure will be redirected to support other Department of Foreign Affairs and Trade measures in the 2013‑14 Budget.

Official development assistance — Australian Membership of the African Development Bank Group

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
AusAID nfp nfp nfp
Department of the Treasury nfp nfp nfp
Total — Expense
Department of the Treasury
AusAID
Total — Capital

Australia will join the African Development Bank (AfDB) Group.

The AfDB was established in 1964 with the aim of helping to reduce poverty and to provide technical and financial assistance to encourage economic and social development in Africa. The AfDB Group includes the AfDB and African Development Bank Fund (AfDF). The AfDB is the Group's parent organisation that seeks to contribute to the sustainable economic development and social progress of its African members. The AfDF provides concessional loans and grants for development purposes.

Membership of the AfDB Group involves the purchase of AfDB shares and contributions to the AfDF. AfDB share purchase will be administered by The Treasury, estimated at a value of $88.2 million to be paid over 2014‑15 to 2016‑17.

AfDF membership will be administered by AusAID. This will involve a $160.9 million initial contribution and payments towards the thirteenth and fourteenth AfDF replenishments. These replenishments are scheduled for 2014‑15 and 2016‑17 respectively. Australia's contribution to the AfDF contains both an investment (approximately 70 per cent) and a grant component (approximately 30 per cent), with the investment component having no impact on the underlying cash balance or fiscal balance. The expenditure for this measure is not for publication as the replenishment values are yet to be negotiated.

This measure relates to the Official development assistance — African Development Bank Group membership 2012‑2013 Budget measure which provided $9.3 million in departmental funding over four years for AusAID and The Treasury to commence the process of joining the AfDB Group.

Official development assistance — cap on asylum seeker costs from existing official development assistance

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
AusAID

Consistent with Organisation for Economic Cooperation and Development (OECD) guidance, the Government will continue to report the costs associated with the sustenance of asylum seekers on Bridging Visas Class E or living in the community on residence determinations during their first 12 months of stay. Support to asylum seekers is managed by the Department of Immigration and Citizenship and provides for needs such as accommodation, food, clothing and other basic necessities for people from developing countries.

To defray any effects on other parts of the Official development assistance (ODA) budget, the Government will cap expenditure from the existing ODA funding envelope in any one year at $375 million.

Official development assistance — Deferring Australia's Growth Target

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
AusAID ‑326.5 ‑688.2 ‑906.5

The Government will continue to increase Australia's aid budget to 0.5 per cent of Gross National Income but defer the target date by one year, from 2016‑17 to 2017‑18.

This measure will achieve $1.9 billion in savings over the forward estimates while still increasing aid spending by 42.4 per cent over this period. The savings over the forward estimates will be achieved by a $1.5 billion reduction in the provision for expanded aid funding held in the Contingency Reserve and a reduction of $415.3 million to existing AusAID resources.

Under the new growth profile, official development assistance spending will have doubled from 2007‑08 levels by 2015‑16.

Official development assistance — Enhancing Australia's Commitment to Development in the Asia‑Pacific Region

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
AusAID 12.2 124.5
AusAID 0.4

The Government will provide $390.9 million over four years to address priority development needs in the Asia‑Pacific region.

This measure will provide assistance to 16 countries in the Asia‑Pacific region. The initiatives will address education, family planning, avoidable blindness and nutrition to assist developing countries work towards achieving the Millennium Development Goals and combat development challenges post 2015.

Funding for this measure includes $137.0 million to be offset from the provision for expanded aid funding held in the Contingency Reserve and $253.9 million to be absorbed from within existing AusAID resources.

Official development assistance — Enterprise Resource Planning system

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of Finance and Deregulation .. ..
AusAID ‑1.5
Total — Expense .. ‑1.5
AusAID 1.5

The Government will provide $2.2 million over two years for the development of a second pass business case for an Enterprise Resourcing Planning (ERP) system to improve the management of information across AusAID.

Of this funding, $0.1 million will be provided to the Department of Finance and Deregulation for the Gateway review process.

The cost of this measure will be met from within existing AusAID resources.

Official development assistance — offsetting savings

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
AusAID .. ‑56.9 ‑97.8 ‑41.7 ‑42.2

To fund new aid programs in this budget, $238.6 million across the forward estimates will be transferred to other government agencies from existing AusAID funding.

This aid spending will support key government priorities including:

  • Regional Assistance Mission to Solomon Islandstransition;
  • Combating People Smuggling — Enhancing the regional response; and
  • Official development assistance — Australian Membership of the African Development Bank Group.

Regional Assistance Mission to Solomon Islands — transition

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Federal Police 83.0 82.6 74.7 67.9
Department of Defence 9.7 ‑1.0
Department of Foreign Affairs and Trade 3.7 3.3 3.4 3.4
AusAID 36.8 36.9
Total — Expense 96.4 84.9 114.9 108.2
Australian Taxation Office ‑3.5 ‑3.5 ‑2.5 ‑2.0
Australian Federal Police 4.4 2.5 0.4
Department of Foreign Affairs and Trade 0.1 0.3
Total — Capital 4.5 2.8 0.4

The Government will provide $498.9 million (including capital funding of $15.4 million) over four years to continue the Regional Assistance Mission to Solomon Islands (RAMSI).

This measure will assist the Solomon Islands Government build capacity to deliver sustainable economic growth and improve public financial management, strengthen the public service, provide support for the national election process and improve capacity in the law and justice sector.

The measure also funds the continuation of the deployment of Australian Federal Police (AFP) and Australian Defence Force (ADF) personnel, with the ADF component expected to withdraw in the second half of 2013.

Funding for official development assistance eligible costs in this measure includes $198.6 million to be offset from within the existing resources of AusAID and $155.8 million from the provision for expanded aid funding held in the Contingency Reserve.

The measure is also expected to lead to a reduction in revenue of $11.5 million over four years as a result of the tax treatment of the income and benefits received by deployed AFP and ADF personnel overseas.

United Nations Security Council Term

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of Foreign Affairs and Trade 6.9 11.4 7.5
Office of National Assessments 0.6 0.7 0.6 ..
Department of the Prime Minister and Cabinet 0.1 0.3 0.2
Total — Expense 7.6 12.4 8.3 ..
Office of National Assessments 0.7 .. ..
Department of Foreign Affairs and Trade 1.7
Total — Capital 2.4 .. ..

The Government will provide $30.7 million over three years to support Australia's membership of the United Nations Security Council. For the first time in 27 years, and only the fifth time in our history, Australia has secured a seat on the United Nations Security Council for 2013 and 2014.

Funding has been provided for support services, including additional representation at the UN headquarters in New York and in Africa to ensure that Australia performs a strong role as a member of the United Nations Security Council.

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